<PAGE>
 







                                  CORE, INC.




                            1997 STOCK OPTION PLAN











                                                       SEPTEMBER 1997
<PAGE>
 
                                  CORE, INC.
                            1997 STOCK OPTION PLAN


     1. Purpose of the Plan. CORE, INC., a Massachusetts corporation ("the 
        -------------------
Company") wishes to advance its interests by encouraging and enabling eligible 
employees of the Company (including the Company's subsidiaries) and other 
persons affiliated with the Company to acquire stock in the Company, and 
believes that the granting of stock options, including both "Incentive Stock 
Options" and "non-ISOs" will stimulate the efforts of such persons, strengthen 
their desire to remain with the Company, provide them with a more direct 
interest in its welfare and assure a closer identification between them and the 
Company. In order to provide for the granting of stock options over a longer 
period of time, the Company has adopted this 1997 Stock Option Plan in 
furtherance of its objectives with respect to its employees and other persons 
affiliated with the Company. As used herein, an "Incentive Stock Option" shall 
mean an option described in Section 422 of the Internal Revenue Code of 1986, as
amended (the "Code"); and, a "non-ISO" shall mean an option (i) in which the 
fair market value of the stock which may be acquired upon exercise of such 
option exceeds the limitation for Incentive Stock Options set forth in Section 6
hereof, (ii) which for some other reason does not satisfy the requirements of 
the Code applicable to Incentive Stock Options; or (iii) contains terms that 
provide that it will not be treated as an Incentive Stock Option. As used 
herein, "Stock Options" shall include both Incentive Stock Options and non-ISOs.
     
     2. Amount of Stock Subject to the Plan. The total number of shares of 
        -----------------------------------
Common Stock, par value $0.10 per share, of the Company which may be sold 
pursuant to Stock Options granted under the Plan shall not exceed 600,000 
shares. The shares sold under the Plan may be both authorized and unissued 
shares or issued shares repurchased by the Company. In the event that any Stock 
Options granted under the Plan shall terminate or expire for any reason without 
having been exercised in full, the shares not purchased under such Stock Options
shall be again available for Stock Options which may be granted pursuant to the 
Plan.
  
     3. Administration. The Plan shall be administered by the Board of Directors
        --------------
of the Company (the "Board"). The Board shall have the authority, in its 
discretion, to grant an



                                       1
<PAGE>
 

Incentive Stock Option to any eligible employee and a non-ISO to any person. All
Stock Options shall be evidenced by written instruments (which need not be 
uniform). Forms of agreements evidencing ISOs and non-ISOs (which may be revised
and amended) are attached as Exhibits to this Plan.

     The Board shall have authority in its discretion to determine the 
individuals to whom Stock Options shall be granted, the times when they shall 
receive them, the option price of each Stock Option, the period during which and
terms and conditions under which each Stock Option may be exercised, and the 
number of shares to be subject to each Stock Option.

     The Board shall also have authority to construe the respective Stock 
Options and the Plan, to prescribe, amend and rescind rules and regulations 
relating to the Plan, to determine the terms and provisions not specified in or 
incorporated with the Plan to be included in the respective Stock Options (which
need not be uniform) and to make all other determinations necessary or advisable
for administering the Plan. The Board may correct any defect or supply any 
omission or reconcile any inconsistency in the Plan or in any Stock Option in 
the manner and to the extent that it shall deem expedient to carry into effect, 
and it shall be the sole and final judge of such expediency. All actions or 
determinations of the Board shall be by majority vote of its members and the 
determination of the Board on the matters referred to in this section shall be 
conclusive.

     The Board may delegate any or all of its duties and responsibilities under 
this Plan to the Compensation Committee of the Board.

     Notwithstanding the foregoing, the Board's authority as set forth in this 
Section 3 with respect to matters involving Incentive Stock Options is subject 
to the express provisions and limitations of this Plan and subject to Section 
422 of the Code.

     4. Eligibility. Only employees of the Company (including the Company's 
        -----------
subsidiaries) shall be eligible to receive Incentive Stock Option hereunder. A 
director of the Company who is not also an employee of the Company shall not be 
eligible to receive Incentive Stock Options hereunder. Employees, directors, 
consultants and other persons affiliated with the Company are eligible to 
receive non-ISOs hereunder.

     5. Restrictions on Incentive Stock Options.  An Incentive Stock Option 
        --------------------------------------- 
shall not be granted to any employee, who, at the time the Incentive Stock 
Option is granted, owns stock


                                       2
<PAGE>
 

possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company or of its parent or subsidiary corporation, 
provided, however, that the prohibition of granting Incentive Stock Options to 
employees owning more than ten percent (10%) of the voting power of the Company 
or its parent or subsidiary corporation shall not apply if at the time such 
Incentive Stock Option is granted the price of Incentive Stock Option is at 
least 110% of the fair market value of the stock subject to the Incentive Stock 
Option and such Incentive Stock Option by its terms is not exercisable after the
expiration of five (5) years from the date such Incentive Stock Option is 
granted. For the purposes of the preceding sentence, an individual is 
considered to own the stock directly or indirectly by or for his brothers, 
sisters, spouse, ancestors and lineal descendants.

     Notwithstanding any provisions of this Plan, any Incentive Stock Option 
granted hereunder shall contain all provisions required to be included in the 
terms of an Incentive Stock Option under Section 422 of the Code.

     6. Option Prices and Payment.  The purchase price of Common Stock provided 
        -------------------------
under each Stock Option granted pursuant to the Plan shall be set by the Board 
and in the case of Incentive Stock Options shall equal or exceed both the fair 
market value of the stock on the date of the granting of the Incentive Stock 
Option, as determined by the Board. The purchase price (plus the amount of any 
applicable withholding taxes) shall be paid in full upon each exercise of a 
Stock Option. The Board may, in its discretion, provide that the purchase price 
of Common Stock provided under either an Incentive Stock Option (granted 
pursuant to the Plan) or non-ISO may be payable with stock of the Company; 
provided, however, that in any event the purchase price of the Common Stock 
provided under each Incentive Stock Option shall equal or exceed the fair market
value of the stock on the date of granting of the Incentive Stock Option.

     The proceeds of the sale of stock subject to the Stock Options are to be 
added to the general funds of the Company and used for its corporate purposes.

     As stated in Section 3, the Board may delegate any or all of its duties and
responsibilities to the Compensation Committee.

     7. Period of Incentive Stock Options and Certain Limitations on Rights to 
        ----------------------------------------------------------------------
Exercise Incentive Stock Options. Each Incentive Stock Option shall expire no 
--------------------------------
later than ten (10) years from the date of grant of the Incentive Stock 
Option; provided, however, that except as provided

                                       3

<PAGE>
 
in Sections 9 and 10 hereof, no holder of an Incentive Stock Option may exercise
his or her Incentive Stock Option unless at the time of exercise he or she has 
been continuously in the employ of the Company since the grant of the Incentive 
Stock Option.

     Incentive Stock Options granted hereunder may also include provisions 
(which need not be uniform) designed to prevent violations of the Securities Act
of 1933, and the rules and regulations thereunder, upon the exercise of an 
Incentive Stock Option or the sale or other disposition of the shares of Common 
Stock purchased on exercise of an Incentive Stock Option.

     No holder of any Incentive Stock Option or his or her legal 
representatives, legatees or distributees, as the case may be, will be or will 
be deemed to be a holder of any shares covered by the Incentive Stock Option 
unless and until he or she has exercised the Incentive Stock Option as to such 
shares, paid for such shares in full and received certificates representing such
shares.

     8.  Non-transferability of Incentive Stock Options. No Incentive Stock 
         ----------------------------------------------
Option granted under the Plan shall be transferable otherwise than by will or by
the laws of descent and distribution, and an Incentive Stock Option may be 
exercised during the lifetime of the employee to whom its granted only by him or
her.

     9.  Termination of Employment. If the employment of an employee to whom an 
         -------------------------
Incentive Stock Option has been granted terminates for any reason other than by 
death, the Incentive Stock Option holder may exercise his or her Incentive Stock
Option (to the extent he or she was entitled to do so at the termination or 
employment) only at any time and from time to time within three (3) months after
such termination, but in no event after the expiration of the Incentive Stock 
Option; provided, however, that if the employment of an employee to whom an
Incentive Stock Option has been granted terminates due to the permanent and 
total disability of such employee, such employee may exercise his or her 
Incentive Stock Option (to the extent he or she was entitled to do so at the 
termination of employment) only at any time and from time to time within twelve 
(12) months after such termination, but in no event after the expiration of the 
Incentive Stock Option. Incentive Stock Options granted under the Plan shall not
be affected by any change of employment so long as the holder continues to be an
employee of the Company. Nothing in the Plan or in any Stock Option granted 
under it shall confer any right to continue in the employ of the Company or 
interfere in any way with the right of the Company to terminate any employment 
at any time.

                                       4
<PAGE>
 
     10. Death of Holder of Incentive Stock Option.  In the event of the death 
         -----------------------------------------
of the holder of an Incentive Stock Option under the Plan while he or she is 
employed by the Company or a subsidiary of the Company, the Incentive Stock 
Option theretofore granted to him or her may be exercised (to the extent the 
deceased was entitled to do so at the date of his or her death) at any time and 
from time to time within a period of three (3) months after death by the person 
or persons to whom the right under said Incentive Stock Option shall pass by 
will or the laws of descent and distribution, but in no event may such person or
persons exercise the Incentive Stock Option after its expiration.

     11. Adjustments Upon Changes in Capitalization. Notwithstanding any other 
         ------------------------------------------
provisions of the Plan, in the event of any change in the outstanding Common 
Stock of the Company by reason of a stock dividend, recapitalization, merger, 
consolidation, split-up, combination or exchange of shares, or the like, the 
aggregate number and class of shares available under the Plan and the number and
class of shares subject to each outstanding Stock Option and the Stock Option 
prices shall be appropriately adjusted by the Board, whose determination shall 
be conclusive.

     12. Amendment and Termination.  Unless the Plan shall have been terminated 
         -------------------------
as hereinafter provided, the Plan shall terminate on September 22, 2007 (ten 
years from adoption) and no Stock Option under it shall be granted thereafter.  
The Board at any time prior to that date may terminate the Plan, or make such 
changes in it and additions or amendments to it as the Board shall deem 
advisable; provided, however, that any change in or addition or amendment to the
Plan which shall increase the aggregate number of shares of Common Stock of the 
Company which may be issued and sold upon the exercise of Incentive Stock 
Options granted pursuant to the Plan shall be subject to approval by the 
stockholders of the Company within twelve (12) months after its adoption or the 
same shall become null and void.

     No termination or amendment of the Plan may, without the consent of the
holder of any Stock Option then outstanding, adversely affect the rights of such
holder under the Stock Option.

     13. Stockholder Approval and Effectiveness of ISO Status.  The Incentive 
         ----------------------------------------------------
Stock Option status of any option granted pursuant to this Plan is subject to 
approval of this Plan by the stockholders of the Company within one (1) year 
after the date of adoption of this Plan by the

                                       5
<PAGE>
 
Board of Directors of the Corporation.  If such stockholder approval is not 
obtained, such previously granted Stock Option may, by its terms, be a non-ISO.

     14. Limitations on non-ISOs.  At the discretion of the Board of Directors,
         -----------------------
non-ISOs granted hereunder may contain some, all or none of the limitations 
described in Sections 5, 7, 8, 9 and 10, or other limitations.

     15. Intent and Interpretation.  It is the intent of this Plan to conform 
         -------------------------
with the Section 16 Rules promulgated under Section 16 of the Securities 
Exchange Act of 1934, as amended (the "Exchange Act").  Accordingly, this Plan 
shall be interpreted, to the maximum extent possible, so that options granted 
under the Plan to directors and officers of the Company shall be exempt from 
Section 16(b) of the Exchange Act and that grants of Incentive Stock Options 
shall be issuable to eligible persons under the Plan.

                                  CORE, INC.

[Corporate Seal]                  By:  /s/ George C. Carpenter IV
                                       --------------------------
                                       George C. Carpenter IV
                                       Chairman and Chief Executive Officer



Dated: September 22, 1997




Exhibits:
--------
Form of ISO
Form of non-ISO

                                       6
<PAGE>
 
                                  CORE, INC.

                       INCENTIVE STOCK OPTION AGREEMENT
                       --------------------------------

     THIS INCENTIVE STOCK OPTION AGREEMENT is entered into by and between CORE, 
INC., a Massachusetts corporation (the "Company"), and )name( ("Optionee"). 

                              W I T N E S S E T H
                              - - - - - - - - - -

     WHEREAS, the Board of Directors of the Company have adopted and approved
the 1997 Stock Option Plan (the "1977 Stock Option Plan"); and

     WHEREAS, the Company and Optionee desire to enter into this Agreement 
concerning the grant by the Company of Incentive Stock Options to Optionee, 
pursuant to the 1997 Stock Option Plan and Section 422 of the Internal Revenue 
Code of 1986, as amended;

     NOW, THEREFORE, in consideration of the covenants herein set forth, the 
parties agree as follows:

     1.   Shares; Price; Term.
          -------------------

     As of )date( (the "Grant Date"), the Company grants Optionee an option to 
purchase )###( shares of its Common Stock, par value $0.10 per share (the 
"Option Shares), at a price of )price( per share (which price is equal to the 
closing sale price as quoted on NASDAQ-NNM on )date prior to grant date()
pursuant to the 1997 Stock Option Plan. Except for earlier termination events 
set forth in Sections 4 (concerning termination or employment) and 5, this 
option shall terminate entirely at the close of business on )date(.

     2.   Vesting.
          -------

     The Option Shares shall be 20% exercisable at grant and an additional 20% 
of the Option Shares shall become exercisable for each additional year of 
service Optionee renders to CORE, INC. or any of its affiliated corporations, 
after the Grant Date. No vesting shall occur after Optionee's termination of 
employment for any reason. Subject to earlier termination events and Optionee's 
continued employment, the Option Shares shall be exercisable according to the 
following schedule:

<TABLE> 
<CAPTION> 
         Number               First Date        Last Date
         of Shares            of Exercise       of Exercise
         ---------            -----------       -----------
         <S>        <C>       <C>               <C> 
           ###       20%        #/#/##            #/#/##
           ###       20%        #/#/##            #/#/##
           ###       20%        #/#/##            #/#/##
           ###       20%        #/#/##            #/#/##
           ###       20%        #/#/##            #/#/##
           ---      ----                       
Total      ###      100%                       
</TABLE>

                                       1
<PAGE>
 
     Notwithstanding the foregoing, this Option shall immediately become 
exercisable as to all shares then subject hereto in the event of a "Change in 
Control" (as hereinafter defined) of the Company.

     As used herein, a "Change in Control" of the Company shall be deemed to 
have occurred if:

     (i)    there is a merger or consolidation of the Company in which the 
            Company is not the continuing or surviving corporation;

     (ii)   the Company sells substantially all its assets to a single purchaser
            or to a group of associated purchasers;

     (iii)  at least two-thirds of the outstanding common stock of the Company
            is sold, exchanged or otherwise disposed of in one transaction or in
            a series of related transactions;

     (iv)   any person or entity becomes directly or indirectly the owner or
            beneficial owner of 50% or more of the Company's outstanding stock;

     (v)    individuals who at the date hereof constitute the Board of Directors
            of the Company cease to constitute a majority thereof, provided that
                                                                   -------------
            such change in the direct or indirect result of a proxy fight and
            contested election for positions on the Board; or

     (vi)   the Board of Directors of the Company determines in its sole and
            absolute discretion that there has been a change in control of the
            Company.

     3.     Exercise.
            --------

     Optionee may exercise this Incentive Stock Option from time to time as 
herein provided, by delivery to the Company, as to each such exercise, at its 
principal office of (a) written notice of exercise of this Incentive Stock 
Option, stating the number of shares then being purchased hereunder; (b) a check
or cash in the amount of the full purchase price of such shares; (c) a check or 
cash in the amount of federal, state and local withholding taxes, if any, 
required to be withheld and paid by the Company as a result of such exercise; 
and (d) such other documents or instruments as may be required by any then 
applicable federal or state laws or regulations, or regulatory agencies 
pertaining to this Incentive Stock Option, any exercise thereof and/or any 
offer, issue, sale or purchase of any shares covered by this Incentive Stock 
Option.  Not less than one share may be purchased at one time.  After the 
Company shall have received all of the foregoing, the Company shall proceed with
reasonable promptness to issue the shares so purchased upon such exercise of the
Incentive Stock Option; provided, however, that Optionee or any person or 
persons entitled to exercise this Option under Section 5 hereof shall not be or 
be deemed to be the record or beneficial

                                       2
<PAGE>
 
owner of any such shares purchased upon any exercise of this Incentive Stock 
Option until and unless the stock certificate or certificates evidencing such 
shares actually shall have been issued.  Except as provided in Sections 4 and 5 
hereof, Optionee may exercise this Incentive Stock Option only if, on the date 
of exercise, he has been continuously in the employ of the Company since the 
Grant Date.

     4.   Termination of Employment.
          -------------------------

     Notwithstanding the provisions of Sections 1 and 3 hereof, if Optionee 
shall cease to be employed by CORE, INC. (including its subsidiaries) for any 
reason other than his or her death, Optionee may exercise this Incentive Stock 
Option (to the extent he or she was entitled to do so at the termination of his 
or her employment) at any time and from time to time within three (3) months 
after such termination, but in no event after the expiration of this Incentive 
Stock Option; provided, however, that if the employment of Optionee terminates 
due to the permanent and total disability of Optionee, Optionee may exercise 
this Incentive Stock Option (to the extent he or she was entitled to do so at 
the termination of his or her employment) only at any time and from time to time
within twelve (12) months after such termination, but in no event after the 
expiration of this Incentive Stock Option. No provision of the 1997 Stock Option
Plan or this Incentive Stock Option shall confer any right to continue in the
employ of CORE, INC. or interfere in any way with the right of CORE, INC. to
terminate any employment at any time.

     5.   Death of Optionee; No Assignment.
          --------------------------------

     This Incentive Stock Option shall not be assignable or transferable except 
by will or by the laws of descent and distribution and shall be exercisable 
during his or her lifetime only by Optionee.  If Optionee shall die while in the
employ of CORE, INC., his or her personal representative or the person entitled 
to succeed to Optionee's rights hereunder shall have the right, at any time and 
from time to time within three (3) months after the date of Optionee's death, 
and prior to the expiration or termination of this Incentive Stock Option 
pursuant to Section 1 hereof, to exercise this Incentive Stock Option to the 
extent that Optionee was entitled to exercise this Incentive Stock Option at the
date of his or her death.

     6.   No Rights as Stockholder.
          ------------------------

     Optionee shall have no rights as stockholder with respect to the Common
Stock covered by this Incentive Stock Option until the date of the issuance of a
stock certificate or stock certificates. No adjustment will be made for
dividends or other rights for which the record date (or if there is no record
date established, then the date established for the distribution of such
dividend or right) is prior to the date such stock certificates are issued.

                                       3
<PAGE>
 
     7.   Conditions of Resale.
          --------------------

     Optionee agrees to comply with all applicable federal and state securities 
laws and rules and regulations thereunder in connection with the resale by 
Optionee of any shares of Common Stock which shall have been received by 
Optionee upon exercise of this Option, and Optionee further agrees to comply 
with all requirements of the Company which may be reasonably imposed by the 
Company as conditions of such resale.  The Company may, in its discretion, place
a legend on stock certificates issued in connection with the exercise of this 
Incentive Stock Option in order to insure compliance with the Securities Act of 
1933, as amended. 

     The Company has no obligation to register the Option Shares on a
registration statement with the Securities and Exchange Commission. Accordingly,
notwithstanding the Company's status as a publicly-held corporation, the Option
Shares may be restricted shares and not subject to resale without compliance
with Rule 144 or other exemption. In general, Rule 144 requires a one-year
holding period prior to sale of the shares of stock.

     8.   Certain Adjustments Upon Changes in Capitalization.
          --------------------------------------------------

     In the event of any change in the outstanding Common Stock of the Company 
by reason of a stock dividend, consolidation, split-up, combination or exchange 
of shares, or the like, the aggregate number and class of shares available under
this Incentive Stock Option Agreement shall be appropriately adjusted by the 
Board of Directors whose determination shall be conclusive.

     9.   This Agreement Subject to 1997 Stock Option Plan.
          ------------------------------------------------

     This Agreement is made pursuant to all of the provisions of the 1997 Stock 
Option Plan (including the Rules and Regulations promulgated thereunder), and is
intended, and shall be interpreted in a manner, to comply therewith.  Any 
provision hereof inconsistent with the 1997 Stock Option Plan shall be 
superseded and governed by the 1997 Stock Option Plan.  A copy of the 1997 Stock
Option Plan is available from the Company upon Optionee's written request.

     10.  Miscellaneous.
          -------------

     (a)  Sections; Headings.  Sections and other headings are included herein 
          ------------------
for reference purposes only and shall not be construed or interpreted as part of
this Agreement.

     (b)  Gender; Plural.  Wherever and whenever the context of this Agreement
          --------------
shall so require, the masculine, feminine and neuter gender of any noun or 
pronoun shall include any or all of the other genders and the singular shall 
include the plural and the plural shall include the singular.

                                       4
<PAGE>
 
     (c)   Counterparts.  This Agreement may be executed in several 
           ------------
counterparts, all of which shall constitute one and the same instrument.

     (d)   Incentive Stock Option Treatment.  Optionee understands that in order
           --------------------------------
to receive "Incentive Stock Option" treatment pursuant to Section 422 of the 
Internal Revenue Code of 1986, as amended, Optionee nay not dispose of the 
Common Stock which may be purchased hereunder within two years after the Grant 
Date, and must hold said Common Stock for at least one year after the date of 
exercise of the Incentive Stock Option described herein.  For Incentive Stock 
Option treatment, the aggregate fair market value of the shares of Common Stock 
(determined as of the respective date or dates of grant) for which one or more 
options granted to Optionee under the Plan (or any other option Plan of the 
Company) may for the first time become exercisable as Incentive Options during 
any one calendar year shall not exceed the sum of One Hundred Thousand Dollars 
($100,000).  To the extent the Employee holds two or more such options which 
become exercisable for the first time in the same calendar year, the foregoing 
limitation on the exercisability of such options as Incentive Options shall be 
applied on the basis of the order in which such options are granted.

     (e)   Section 16 Rules.  It is the intent of this Option Agreement to 
           ----------------
conform to the Section 16 Rules under the Securities and Exchange Act of 1934, 
without affecting the exempt status of the 1997 Stock Option Plan.  Accordingly,
this Option Agreement shall, to the maximum extent possible, be interpreted so 
that options granted under this Agreement shall be exempt from Section 16(b) of 
the Act.

     (f)   Stockholder Approval and Effectiveness of ISO Status.  
           ----------------------------------------------------
Notwithstanding any other term or provision of this agreement, the Incentive 
Stock Options status of the options described in this agreement is subject to 
approval of the 1997 Stock Option Plan by the stockholders of the Company on or 
before September 22, 1998.  If such stockholder approval is not obtained, the 
options granted under this Agreement shall be non-ISOs.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of 
the _____________ day of ____________, )year(, to be effective )date(.

                                       CORE, INC.

                                       By:
                                            ------------------------------------
                                            George C. Carpenter IV
                                            Chairman and Chief Executive Officer


                                       Optionee:


                                            ------------------------------------

                                       5
<PAGE>
 
      THIS OPTION IS NOT, AND SHALL NOT BE TREATED AS AN INCENTIVE STOCK
       OPTION, AS DEFINED IN SECTION 422 OF THE INTERNAL REVENUE CODE OF
                               1986, AS AMENDED.

                                  CORE, INC.

                            STOCK OPTION AGREEMENT
                            ----------------------

     THIS STOCK OPTION AGREEMENT, is entered into by and between CORE, INC., a 
Massachusetts corporation (the "Company"), and )name( ("Optionee").

                              W I T N E S S E T H
                              - - - - - - - - - -

     WHEREAS, the Company and Optionee desire to enter into this Agreement 
concerning the grant by the Company of Stock Options to Optionee.

     NOW, THEREFORE, in consideration of the covenants herein set forth, the 
parties agree as follows:

     1.   Shares; Price; Term.
          -------------------

     As of )date(, (the "Grant Date"), the Company grants Optionee an option to 
purchase )###( shares of its Common Stock, par value $0.10 per share (the 
"Option Shares"), at a price of )price( per share (which price is equal to the 
closing sale price as quoted on NASDAQ-NNM on )date prior to grant date(). 
Except for earlier termination events set forth in Sections 4 (concerning
termination of services) and 5, this option shall terminate entirely at the
close of business on )date(.

     2.   Vesting.
          -------

     The Option Shares shall be 20% exercisable at grant and an additional 20% 
of the Option Shares shall become exercisable for each additional year of 
service Optionee renders to CORE, INC. or any of its affiliated corporations, 
after the Grant Date. No vesting shall occur after Optionee's termination of 
service for any reason. Subject to earlier termination events and Optionee's 
continued service the Option Shares shall be exercisable according to the 
following schedule:

<TABLE> 
<CAPTION> 
         Number               First Date        Last Date
         of Shares            of Exercise       of Exercise
         ---------            -----------       -----------
         <S>        <C>       <C>               <C> 
           ###       20%        #/#/##            #/#/##
           ###       20%        #/#/##            #/#/##
           ###       20%        #/#/##            #/#/##
           ###       20%        #/#/##            #/#/##
           ###       20%        #/#/##            #/#/##
           ---      ----                       
Total      ###      100%                       
</TABLE>

                                       1
<PAGE>
 
     Notwithstanding the foregoing, this Option shall immediately become 
exercisable as to all shares then subject hereto in the event of a "Change in 
Control" (as hereinafter defined) of the Company.

     As used herein, a "Change in Control" of the Company shall be deemed to 
have occurred if:

     (i)   there is a merger or consolidation of the Company in which the
           Company is not the continuing or surviving corporation;

     (ii)  the Company sells substantially all its assets to a single purchaser 
           or to a group of associated purchasers;

     (iii) at least two-thirds of the outstanding common stock of the Company is
           sold, exchanged or otherwise disposed of in one transaction or in a
           series of related transactions;

     (iv)  any person or entity becomes directly or indirectly the owner or 
           beneficial owner of 50% or more of the Company's outstanding stock;

     (v)   individuals who at the date hereof constitute the Board of Directors
           of the Company cease to constitute a majority thereof, provided that
                                                                  -------------
           such change is the direct or indirect result of a proxy fight and
           contested election for positions on the Board; or

     (vi)  the Board of Directors of the Company determines in its sole and
           absolute discretion that there has been a change in control of the
           Company.

     3.      Exercise.
             ---------

     Optionee may exercise this Stock Option from time to time as hereinabove 
provided, by delivery to the Company, as to each such exercise, at its principal
office of (a) written notice of exercise of this Stock Option, stating the 
number of shares then being purchased hereunder; (b) a check or cash in the 
amount of the full purchase price of such shares; (c) a check or cash in the 
amount of federal, state and local withholding taxes, if any, required to be 
withheld and paid by the Company as a result of such exercise; and (d) such 
other documents or instruments as may be required by any then applicable federal
or state laws or regulations, or regulatory agencies pertaining to this Stock 
Option, any exercise thereof and/or any offer, issue, sale or purchase of any 
shares covered by this Stock Option. Not less than one share may be purchased at
one time. After the Company shall have received all of the foregoing, the 
Company shall proceed with reasonable promptness to issue the shares so 
purchased upon such exercise of the Stock Option; provided, however, that 
Optionee or any person or persons entitled to exercise this Option under Section
5 hereof shall not be or be deemed to be the record or beneficial owner of any 
such shares purchased upon any exercise of this Stock Option until and unless 
the stock certificate or certificates

                                       2

<PAGE>
 

evidencing such shares actually shall have been issued. Except as provided in 
Sections 4 and 5 hereof, Optionee may exercise this Stock Option only if, on the
date of exercise, he has been continuously rendering services to the Company 
since the Grant Date.

     4.   Termination of Employment.
          -------------------------

     Notwithstanding the provisions of Sections 1 and 3 hereof, if Optionee 
shall cease to render services to CORE, INC. for any reason other than his or 
her death, Optionee may exercise this Stock Option (to the extent he or she was 
entitled to do so at the termination of his or her services) at any time and 
from time to time within three (3) months after such termination, but in no 
event after the expiration of this Stock Option; provided, however, that if the 
termination of Optionee's services is due to the permanent and total disability 
of Optionee, Optionee may exercise this Stock Option (to the extent he or she 
was entitled to do so at the termination of his or her services) only at any 
time and from time to time within twelve (12) months after such termination, but
in no event after expiration of this Stock Option. No provision of this Stock 
Option shall confer any right to continue to render services to CORE, INC. or 
interfere in any way with the right of CORE, INC. to terminate any services of 
Optionee at any time.

     5.   Death of Optionee; No Assignment.
          --------------------------------

     This Stock Option shall not be assignable or transferable except by will or
by the laws of descent and distribution and shall be exercisable during his or 
her lifetime only by Optionee. If Optionee shall die while rendering services to
CORE, INC., his or her personal representative or the person entitled to succeed
to Optionee's rights hereunder shall have the right, at any time and from time 
to time within three (3) months after the date of Optionee's death, and prior to
the expiration or termination of this Stock Option pursuant to Section 1 hereof,
to exercise this Stock Option to the extent that Optionee was entitled to 
exercise this Stock Option at the date of death.

     6.   No Rights as Stockholder.
          ------------------------

     Optionee shall have no rights as stockholder with respect to the Common 
Stock covered by this Stock Option until the date of the issuance of a stock 
certificate or stock certificates. No adjustment will be made for dividends or 
other rights for which the record date (or if there is no record date 
established, then the date established for the distribution of such dividend or 
right) is prior to the date such stock certificates are issued.

     7.   Conditions of Resale.
          --------------------

     Optionee agrees to comply with all applicable federal and state securities 
laws and rules and regulations thereunder in connection with the resale by 
Optionee of any shares of Common Stock which have been received by Optionee upon
exercise of this Option, and Optionee further agrees to comply with all 
requirements of the 

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<PAGE>
 
Company which may be reasonably imposed by the Company as conditions of such 
resale.  The Company may, in its discretion, place a legend on stock 
certificates issued in connection with the exercise of this Secok Option in 
order to insure compliance with the Securities Act of 1933, as amended.

     The Company has no obligation to register the Option Shares on a 
registration statement with the Securities and Exchange Commission.  
Accordingly, notwithstanding the Company's status as a publicly-held 
corporation, the Option Shares may be restricted shares and not subject to 
resale without compliance with Rule 144 or other exemption.  In general, Rule 
144 requires a one-year holding period prior to sale of the restricted shares of
stock.

     8.   Certain Adjustments Upon Changes in Capitalization.
          --------------------------------------------------

     In the event of any change in the outstanding Common Stock of the Company 
by reason of a stock dividend, consolidation, split-up, combination or exchange 
of shares, or the like, the aggregate number and class of shares available under
this Stock Option Agreement shall be appropriately adjusted by the Board of 
Directors whose determination shall be conclusive.

     9.   This Agreement Subject to 1997 Stock Option Plan.
          ------------------------------------------------

     This Agreement is made pursuant to all of the provisions of the 1997 Stock 
Option Plan (including the Rules and Regulations promulgated thereunder), and is
intended, and shall be interpreted in a manner, to comply therewith.  Any 
provision hereof inconsistent with the 1997 Stock Option Plan shall be 
superseded and governed by the 1997 Stock Option Plan.  A copy of the 1997 Stock
Option Plan is available from the Company upon Optionee's written request.

     10.  Miscellaneous.
          -------------

     (a)  Sections; Headings.  Sections and other headings are included herein 
          ------------------
for reference purposes only and shall not be construed or interpreted as part of
this Agreement.

     (b)  Gender; Plural.  Wherever and whenever the context of this Agreement 
          --------------
shall so require, the masculine, feminine and neuter gender of any noun or 
pronoun shall include any or all of the other genders and the singular shall 
include the plural and the plural shall include the singular.

     (c)  Counterparts.  This Agreement may be executed in several counterparts,
          ------------
all of which shall constitute one and the same instrument.

                                       4
<PAGE>
 
     (d)  Not an Incentive Stock Option.  Optionee understands that this Stock 
          -----------------------------
Option will not be treated as an "Incentive Stock Option" pursuant to Section 
422 of the Internal Revenue Code of 1986.

     (e)  Section 16 Rules.  It is the intent of this Option Agreement to 
          ----------------
conform with the Section 16 Rules under the Securities and Exchange Act of 
1934, without affecting the exempt status of the CORE, INC. 1997 Stock Option 
Plan.  Accordingly, this Option Agreement shall, to the maximum extent possible,
be interpreted so that options granted under this Agreement shall be exempt from
Section 16(b) of the Act.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of 
the _________ day of _____, (year), to be effective (date).


                                  CORE, INC.
                                  
                                  By:  
                                     ------------------------------------
                                     George C. Carpenter IV
                                     Chairman and Chief Executive Officer
                                  

                                  Optionee:

                                  
                                     ------------------------------------






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